2. Variance analysis

Dillard, Inc., has developed the following standard cost data based on a denominator volume of 60,000 direct labor hours (DLHs), which is 75% of the firm's capacity. Budgeted fixed overhead is $360,000 and budgeted variable overhead is $180,000 at this level of activity.

Direct material (3 lbs. @ $2.00/lb.)	$ 6.00
Direct labor (0.5 hrs. @ $88.00/hr.)	4.00
Factory overhead (0.5 hrs. @ $9.00/hr.)	4.50
Total standard cost per unit	$14.50

During the last period, the company used 48,000 DLHs to produce 128,000 units. It incurred the following manufacturing costs:

Actual cost incurred
Direct material (380,000 lbs.)	$779,000
Direct labor (63,000 hrs.)	507,150
Variable overhead	220,000
Fixed overhead	365,000

Required: Determine the price and quantity variances for direct materials and direct labor.